Parker Hannifin (LTS:0KFZ) ROCE % : 17.87% (As of Sep. 2024)

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What is Parker Hannifin ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Parker Hannifin's annualized ROCE % for the quarter that ended in Sep. 2024 was 17.87%.

Parker Hannifin ROCE % Historical Data

The historical data trend for Parker Hannifin's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Parker Hannifin ROCE % Chart

Parker Hannifin Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROCE %

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11.65

14.70

10.02

15.38

18.55

Parker Hannifin Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															17.30	18.08	19.07	20.29	17.87

Parker Hannifin ROCE % Calculation

Parker Hannifin's annualized ROCE % for the fiscal year that ended in Jun. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2024 )		(A: Jun. 2023 )		(A: Jun. 2024 )
	=	4101.098	/	( ( (29964.472 - 7735.37)	+	(29297.842 - 7313.309) )	/ 2 )
	=	4101.098	/	( (22229.102	+	21984.533)	/ 2 )
	=	4101.098	/	22106.8175
	=	18.55 %

Parker Hannifin's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	3953.108	/	( ( (29297.842 - 7313.309)	+	(29600.835 - 7338.03) )	/ 2 )
	=	3953.108	/	( ( 21984.533	+	22262.805 )	/ 2 )
	=	3953.108	/	22123.669
	=	17.87 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Parker Hannifin (LTS:0KFZ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Parker Hannifin ROCE % Related Terms

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Parker Hannifin Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Parker Hannifin Corp (LTS:0KFZ) » Definitions » ROCE %

Comparable Companies

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PH:USA 1PH:Italy PAR:Germany PAR:Germany PAR:Germany P1HC34:Brazil PH:Austria

Address

6035 Parkland Boulevard, Cleveland, OH, USA, 44124-4141

Website

https://www.parker.com

Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.

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